Fourth month of construction slump

Australia’s building industry remains weak, with a boost in the residential sector offset by shrinking engineering activity.
The latest Performance of Construction Index by the Australian Industry Group and the Housing Industry Association rose just 0.7 points in July to 47.1.
The industry fell short of the 50-point level that would classify it as expanding.
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“The two-speed pattern of expansion in the apartment and house building sectors and contraction in the engineering and commercial construction sectors is well-entrenched,” Australian Industry Group head of policy Peter Burn said in a statement on Friday.
“[This] reflects the partial re-balancing of the national economy as investment in mining-related construction retreats.”
Across the index’s four sectors of the construction industry, apartment building was the best performer, with activity there growing at its fastest pace since August last year.
Activity in the house building sector stabilised after three months of expansion.
By contrast, engineering construction went backwards for a 13th consecutive month, reflecting the continued reduction in mining-related investment and a shrinking pipeline of new projects.